OTR makes tracks for east coast

OTR Tyres has acquired NYSE-listed Titan International’s Australian wheel division in a deal valued at roughly $23 million to springboard the Bellevue business’ east coast operations.

OTR is an off-the-road tyres & wheels service and supply business with around 50 staff on its books. It is led by directors Darryl Bentley, Rob Williams and Mick Stupar.

Founded in 2017, OTR has since established supply depots servicing most mining hubs in Western Australia including Kalgoorlie, Karratha and Port Hedland.

The deal, which closed today, will see OTR add New York Stock Exchange-listed Titan International's Australian branch to its operations. 

Strategically, it is hoped to bolster the business’ east coast operations by establishing a presence in Brisbane and service locations in Emerald (north Queensland), Muswellbrook (New South Wales) and Mildura (Victoria).

OTR director Darryl Bentley, who has been in the tyre and wheel business since the 1990s, said the deal would help service opportunities over east.

“We have a strong team, established reputation and the largest mobile tyre handling fleet in Western Australia, but our acquisition of Titan Australia puts us in a unique and immediate position to replicate the unparalleled solution set into Australia’s entire eastern and southern markets,” Mr Bentley said in a statement.

“We’ve held a long-term relationship with Titan Australia and they run a first-class wheel manufacturing and service business that aligns with OTR’s business model.”

While unable to disclose a definitive consideration for the transaction, OTR said the deal returns $23 million in value to Titan.

Titan's Australian branch has around 110 employees.

BDO acted as adviser to the transaction.